If the aggregate price level ________,but nominal wages stay fixed,real wages ________.
A) falls; fall
B) rises; fall
C) falls; remain fixed
D) rises; remain fixed

Name: If the aggregate price level ________,but nominal wages stay fixed,real wages ________. A) falls; fall B) rises; fall C) falls; remain fixed D) rises; remain fixed
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Question

Quizplus · Accepted Answer

When the aggregate price level rises but nominal wages stay fixed, real wages fall because the purchasing power of the wages decreases.

If the Aggregate Price Level ________,But Nominal Wages Stay Fixed,real